This bill introduces a cost of living adjustment (COLA) for retired members of the New Hampshire retirement system who have been retired for at least 60 months as of July 1, 2025. The new section, RSA 100-A:41-f, stipulates that these retirees or their beneficiaries will receive a supplemental allowance of 1.5% of their annual retirement allowance, applicable to the first $50,000 of that allowance. This adjustment will be effective on the first anniversary date after July 1, 2026, and will become a permanent addition to the beneficiary's base retirement allowance. The funding for this supplemental allowance will be sourced from the state annuity accumulation fund, as determined by the retirement system's actuary.

The bill does not authorize new funding or positions but anticipates an increase in expenditures, particularly in FY 2028, estimated at $1,570,000 for the state and $6,620,000 for political subdivisions. The actuarial impact of the bill is projected to increase the actuarial accrued liability by $100.7 million, which will be amortized over a period not exceeding 20 years. Additionally, the bill will incur administrative costs related to updating the pension administration system to accommodate these changes.